Investor presentation - Second quarter and first half 2013 results (PDF)

ams
Q2 and H1 2013 results
Kirk Laney, CEO
Michael Wachsler-Markowitsch, CFO
Moritz Gmeiner, Head of IR
July 2013
© ams AG 2013
What we do for our customers
ams provides
innovative analog
solutions
to the most
challenging
applications
in sensor
and sensor
interfaces,
power
management, and
wireless.
© ams AG 2013
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ams overview
At a glance
• Focus on high performance analog semiconductors
• Ultra-low power, highest accuracy, integration and sensitivity
• Specialize in sensors & sensor interfaces, power management,
and wireless solutions
• Analog IDM: combining design + best-in-class manufacturing
By the numbers
• 350+ analog engineers
• Over 30 years of design experience
• Revenues H1 2013: EUR 176m / FY 2012: EUR 388m
• More than 1,300 employees worldwide
• Over 7,800 customers worldwide
© ams AG 2013
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Our focus
High performance analog ICs
Target markets
Core expertise
Consumer and Communications
Industrial, Medical, & Automotive
58% of revenues (H1 2013)
42% of revenues (H1 2013)
Sensor and sensor
interfaces
Power
management
Wireless
© ams AG 2013
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OUR MARKETS
CONSUMER & COMMUNICATIONS
INDUSTRIAL
MEDICAL
AUTOMOTIVE
© ams AG 2013
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Consumer & Communications
Sensors and sensor interfaces, power management, wireless
Sensors
Power management
Wireless
Innovative products
• Light sensors
• MEMS microphone
ICs
• Hall/inductive/
capacitive sensors
• Power management
ICs
• Lighting
management ICs
• RFID readers
(UHF/HF/NFC)
• NFC front ends,
active booster
• LF/HF/UHF
transceivers/
smart tags
• Active noise
cancellation
(ANC)
• Wireless sensors
(lightning sensor)
• Piezo technology
• EasyPoint™ input
solution
© ams AG 2013
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Light sensors
Worldwide leader in intelligent integrated light sensors
Consumer electronics
• Smartphones
• Tablets
• HDTVs
• PCs
RGB color sensing
gaining ground
Sensor-driven lighting
• Smart home, industrial, retail, and outdoor lighting
Sensor characteristics
• Ambient light (ALS):
Measure ambient light to control display brightness
•
Proximity (Prox): Detect proximity of target, e.g. user’s ear, to
control display and touchscreen on-state; new application in mobile
couponing
•
RGB color : Full analysis of light spectrum and temperature;
enhance display picture quality under varying light environments
© ams AG 2013
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Innovation: UPC barcode emulation / mobile coupon
ams & Mobeam technology partnership
Digital light sensor innovation
• Integrated 1D barcode transmit technology using ams industryleading digital light sensors and Mobeam’s light-based beaming
technology
• TMD3990 optical sensor module combines color light sensing,
proximity detection and integrated IR LED
• Solution utilizes the same proximity IR LED used in smartphones
today for disabling touchscreen displays
• ams multi-year exclusive license agreement with Mobeam, first
design-in activities ongoing
Benefits
• Provides smartphone vendors with a turn-key mobile couponing
solution and enables differentiation without need for additional
components
• Enables smartphones to transmit 1D UPC barcodes that can be
read by the tens of millions of point-of-sales (POS) laser scanners.
• Allows handset makers to support mobile commerce applications
that use barcodes including coupon redemption, loyalty cards, gift
cards, tickets and more
© ams AG 2013
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MEMS microphone ICs
MEMS microphone interfaces for smartphones, handsets,
tablet PCs, notebooks, and other mobile devices
•
•
•
•
•
Over 1.2 billion MEMS microphone ICs shipped in 2012
Industry leader with over 60% market share
Leader in low noise for high quality voice-controlled applications
Extensive product portfolio and unmatched expertise
Drivers of continuing market expansion:
- number and quality of MEMS microphones per device
- ongoing adoption across devices
Over 65% of mobile
phones used
MEMS mics in 2012
© ams AG 2013
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Power management solutions for mobility
PMIC solutions enable optimum battery life and system performance
Power management innovation
• Optimized PMIC design delivers superior performance for
the next generation of smartphones and tablet PCs utilizing
multicore processor designs
• Patent pending unique technology to manage high speed,
high current power stages
Benefits
• Industry’s first programmable and scalable converter solution
supporting up to 20 amps load in 10 microseconds
• Enabling the highest frame rates at maximum screen resolutions for
next generation devices while maximizing battery life
• Innovative multiphase DC/DC solution with industry’s smallest
total size, resulting in the thinnest designs and a PCB area savings
of 50%
© ams AG 2013
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Wireless solutions
Mobile transactions:
Near Field Communications (NFC) solutions
Enhancing
• Solutions for complete NFC on SIM or microSD
smartphone/handset
card and mobile device implementations
NFC performance
including peer-to-peer and reader/tag functions
• Payment functions for new standard in mobile
device transactions
• Analog front-ends and active booster technology
with auto antenna tuning
• Strong market position and design activities in upcoming applications
Authentication: RFID solutions
• Integrated one-chip UHF reader solutions offer low solution cost for
cost-effective RFID deployment
• Other RFID: HF readers, smart tags,
LF/HF/UHF transceivers
• Applications: consumables, goods tracking
and authentication, retail shrinkage prevention
© ams AG 2013
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Industrial
Sensors and sensor interfaces
Industrial automation and control
• Motion control
• Industrial sensors
• Drives
2D and 3D position encoders
• Magnetic rotary and linear encoders
• Integrated high performance Hall sensors
Building automation and security
• HVAC
• Bus systems
Seismic sensor interfaces
• Highest sensitivity converters
© ams AG 2013
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Medical
Sensors and sensor interfaces, power management, wireless
Medical imaging: Leader in lowest noise solutions
• Computer tomography
• Digital X-ray
• Mammography
• Ultrasound
Portable health devices
• Diabetes management
• Heart rate monitors
Robotic surgical solutions
• Encoder-driven accuracy
© ams AG 2013
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Innovation: Computed tomography (CT) sensors
Lowest radiation dose, higher resolution
Medical innovation
• Direct combination of photo-detector and A/D converter into a highly
integrated detector module
• Drastic reduction in power usage, heat dissipation & space required
• Based on in-house TSV 3D packaging technology
Benefits
• Increases image resolution and allows earlier detection & diagnosis
• Significantly lower radiation dose for patient safety
• System power savings
“Revolutionary”
Source: SIEMENS MEDICAL
© ams AG 2013
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Automotive
Sensors and sensor interfaces, bus systems, power management, wireless
Position sensing
• Pedal & throttle position
• Transmission (clutch, gear shift)
• Steering wheel angle and torque
• Brushless motor control applications
Battery power management
• Battery management for conventional, hybrid, and electric vehicles
• Highly-efficient power management
Safety systems
• Collision avoidance systems (pedestrian detection)
• ESP (Electronic Stability Program)
• FlexRay® high bandwidth data network
© ams AG 2013
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Innovation: LIDAR collision avoidance system
Enables automatic braking for accident avoidance and pedestrian protection
Automotive innovation
• Obstacle distance detection by laser pulse time-of-flight
measurement
• Laser beam scans area in front of vehicle, beam reflection is
measured with highest speed and accuracy
• Chip set comprising three channel high bandwidth amplifier and
high speed pipelined ADC
• In volume production, second generation in development
Benefits
• Very cost-effective active safety feature
• Allows for fully automatic braking in dense city traffic
• Simple assembly close to rear view mirror
• Seamless integration with vehicle stability system via standard
CAN bus
Confidential © ams AG 2013
Page 16
Proven manufacturing model
In-house capacity + partnerships:
a scalable and robust growth model
Wafer manufacturing
• Specialty analog processes
• 200mm in-house fab (over 110k wafers p.a.)
• Technology nodes: 0.18µm – 0.35µm – 0.8µm
• Best-in-class efficiency
• Multi-source security: TSMC, UMC, IBM
• Zero-defect program
Additional 2013
investments for 3D
packaging on track
Assembly and test
• In-house test in Austria and Philippines;
Philippines expansion completed
• Multi-source assembly locations
• End-to-end fully integrated supply chain
© ams AG 2013
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Quality and responsibility commitment
Quality commitment
• Certified under
- ISO/TS16949 (automotive)
- ISO/TS13485 (medical)
- ISO 14001 (environment)
• Zero defect commitment with industry-leading field failure rates
• Global quality systems
• Top rankings by customers in 2012
Corporate responsibility
• Member of the UN Global Compact
• Implemented conflict metals/hazardous-use materials program
• CDP (Carbon Disclosure Project)
• 70% reduction of CO2 since 2003; goal to be carbon-neutral by 2015
• Further reduction steps implemented in 2012
© ams AG 2013
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Global value chain
•
•
•
9 design centers
Austria, Switzerland, Italy(2), Spain, Slovenia, USA(2), India
Continuing growth in distribution revenues (2012: >20% of revenues)
Over 30 distributors worldwide including
- Future Electronics
- Digi-Key
- Mouser
© ams AG 2013
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Company highlights
Analog makes sense
© ams AG 2013
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Key figures
EURm
(IAS)
H1 2013
H1 2012
Q2 2013
Q2 2012
176.1
- 6%
186.8
91.2
- 5%
96.1
54%
51%
54%
51%
54%
51%
54%
52%
22.6
- 43%
39.6
12.1
- 43%
21.3
Result from operations (EBIT) (reported)
19.6
- 51%
39.6
9.1
- 57%
21.3
Net result
18.9
- 51%
38.9
9.0
- 54%
19.7
1.73 / 1.66
1.41 / 1.35
3.68 / 3.53
3.06 / 2.93
0.83 / 0.79
0.67 / 0.64
1.87 / 1.77
1.56 / 1.48
Total revenues
Gross margin (before amortization charge)
(incl. amortization charge)
Result from operations (EBIT)
(adjusted for
non-recurring items)
EPS (basic/diluted)
CHF
EUR
© ams AG 2013
Page 21
Financial results
EURm
Total revenues
Total revenues by market H1 2013
250
200
150
- 6%
186.8
176.1
- 5%
100
96.1
Industrial,
Medical,
Automotive
42%
58%
Consumer &
Communications
91.2
50
0
H1 2012 H1 2013
Q2 2012 Q2 2013
Total revenues by region 2012 / H1 2013
100%
Total backlog
150
80%
63%
59%
Asia/Pacific
5%
7%
Americas
32%
34%
Europe (EMEA)
2012
H1 2013
60%
40%
20%
0%
100
50
0
77.4
Mar 31 2013
82.4
Consignment
stock agreements
approx. EUR10-12m
Jun 30 2013
© ams AG 2013
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Financial results
EURm, % of revenues
Gross profit, gross margins
R&D
60
150
53.6%1) 53.7%1)
15.6%
40
100
95.7
90.2
54.1%1) 53.7%1)
49.8
H1 2012 H1 2013
29.1
46.8
Q2 2012 Q2 2013
15.6%
15.0
0
H1 2012 H1 2013
19.6%
17.9
Q2 2012 Q2 2013
EBIT (adjusted for non-recurring items)
SG&A
60
60
15.8%
21.2%
20.7%
12.8%
40
40
36.4
29.6
20
H1 2012 H1 2013
1)
22.2%
39.6
20.6%
15.8%
13.3%
20
15.2
0
34.4
20
50
0
19.5%
18.8
Q2 2012 Q2 2013
before amortization charge
22.6
21.3
12.1
0
H1 2012 H1 2013
Q2 2012 Q2 2013
© ams AG 2013
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Financial results
EURm, % of revenues
Net results, EPS (basic/diluted)
Operating cash flow
60
60
40
CHF3.68/3.53
EUR3.06/2.93
40
49.4
38.9
20
0
CHF1.73/1.66
EUR1.41/1.35
CHF1.87/1.77
EUR1.56/1.48
18.9
19.7
36.9
CHF0.83/0.79
EUR0.67/0.64
9.0
H1 2012 H1 2013
Q2 2012 Q2 2013
Net debt, cash + short term investments
120
Net debt
90
0
24.8
H1 2012 H1 2013
23.2
Q2 2012 Q2 2013
Capital expenditures
60
94.8
60
30
Cash + short term invest.
20
76.0
34.0
40
32.8
2.2
20
0
19.3
-30
12.8
0
-60
Q2 2012 Q2 2013
Q1 2013 Q2 2013
H1 2012 H1 2013
4.5
Q2 2012 Q2 2013
© ams AG 2013
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Thank you
Please visit our website www.ams.com
© ams AG 2013
Profit and loss statement
EURm
(IAS)
H1 2013
H1 2012
Q2 2013
Q2 2012
176.1
158.3
17.8
186.8
174.1
12.7
91.2
81.5
9.8
96.1
89.9
6.3
Gross profit
• Gross margin incl. amortization charge
90.2
51.2%
95.7
51.2%
46.8
51.3%
49.8
51.8%
Research and development
Selling, general and administrative
Other operating income/expenses
- 34.4
- 36.4
0.2
- 29.1
- 29.6
2.6
- 17.9
- 18.8
- 1.0
- 15.0
- 15.2
1.7
Result from operations (EBIT)
• Operating margin
19.6
11.1%
39.6
21.2%
9.1
10.0%
21.3
22.2%
Net financing costs
- 0.1
- 0.8
0.0
- 1.8
Result before tax
Income tax result
19.5
- 0.6
38.8
0.1
9.1
- 0.2
19.6
0.1
Net result
18.9
38.9
9.0
19.7
1.73 / 1.66
1.41 / 1.35
3.68 / 3.53
3.06 / 2.93
0.83 / 0.79
0.67 / 0.64
1.87 / 1.77
1.56 / 1.48
Total revenues
• Products
• Foundry
EPS (basic/diluted)
CHF
EUR
© ams AG 2013
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Balance sheet
EURm
Jun 30,
2013
Dec 31,
2012
Liabilities and equity
Jun 30,
2013
76.0
54.5
45.8
10.8
86.8
42.2
56.2
11.2
Interest-bearing debt
Trade liabilities
Provisions
Other liabilities
2.0
26.3
22.2
19.1
9.4
26.4
24.3
20.8
Total current assets
187.1
196.4
Total current liabilities
69.6
80.9
Fixed assets
Intangible assets
Investments
Deferred tax assets
Other non-current assets
146.3
258.8
4.8
32.8
8.4
131.3
260.0
6.4
32.9
7.0
Interest-bearing debt
Employee benefits
Provisions
Deferred tax liabilities
Other liabilities
76.1
21.0
23.4
15.8
13.6
71.4
19.2
22.8
17.2
13.1
Total non-current assets
451.0
437.5
Total non-current
liabilities
Shareholders’ equity
150.0
143.6
418.6
409.5
Total liabil. and equity
638.1
634.0
Assets (IAS)
Cash and short term invest.
Trade receivables
Inventories
Other current assets
Total assets
638.1
634.0
Dec 31,
2012
© ams AG 2013
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Cash flow statement
EURm
(IAS)
H1 2013
H1 2012
Q2 2013
Q2 2012
Result before tax
Depreciation
19.5
18.0
38.8
16.8
9.1
9.0
19.6
8.1
Cash flow from operations
36.9
49.4
23.2
24.8
Capital expenditures
- 32.8
- 12.8
- 19.3
- 4.5
Cash flow from investing activities
- 33.4
- 17.2
- 18.9
- 9.2
Proceeds from borrowings
Repayment of debt
Dividends paid
0.4
- 2.6
- 19.4
1.6
- 25.4
- 8.1
0.1
- 0.7
- 19.4
1.2
- 23.6
- 8.1
Cash flow from financing activities
- 16.2
- 44.0
- 23.0
- 37.8
Change in cash and cash equivalents
- 12.7
- 11.7
- 18.8
- 22.1
55.2
40.0
55.2
40.0
Cash and cash equivalents at end of period
© ams AG 2013
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